Daze Melbourne 2015: Early Stage Investments & The Importance of Partnerships – Key Ingredients for Business Success

1. Early stage investment and the importance of partnership –
Key Ingredients for Business Success
Tristram Cleminson, Director, CMB Capital
December 2015
Strictly Confidential

2. Early Stage Investment
Technology ! Media ! Entertainment ! Telecoms
Integrated, sector focused
corporate advisory and investment
business model
Strictly Confidential
CMB Capital CMB Advisory
2

3. Early Stage Investment in Australia
Strictly Confidential
3
In the early stages, Australian startups raise 21% of the capital of Silicon Valley startups
When ready to scale their operations, Australian startups raise 1% of the capital of Silicon Valley startups
Australian startups tackle niche markets 14% more often than Silicon Valley startups
4.8% of Australian startups survive to profitability; 8% in Silicon Valley; 6.6% in New York
Conclusion?
Being a startup is hard, particularly in Australia?
But, the lack of capital and other obstacles is forcing Australian startups to be smarter and to expand with
limited resources

4. – An Australian success story
Strictly Confidential
4
Australia’s largest online local services marketplace
It’s part of the 4.8% that has survived to profitability
But, with very limited funding by any measure
Its US equivalent : Thumbtack
Operates in a market almost 15x bigger
Has raised more than 50x the capital of ServiceSeeking.com.au
But, it is not profitable
And, it is only 4 times the size of ServiceSeeking.com.au

5. How startups can survive in Australia
Technology ! Media ! Entertainment ! Telecoms
Integrated, sector focused
corporate advisory and investment
business model
Strictly Confidential
CMB Capital CMB Advisory
5

6. #1: People, people, people
6
Agency Group
Head UK
GM and Sales and
Marketing Director
Director – Online Learning
Services, Business Development
Strategy consultant for
McKinsey & Company
Strictly Confidential
Sales Director

7. #2: Target the smart money
7
Founders of Clifford Rosenberg William Easton
Strictly Confidential

8. #3: Don’t reinvent the wheel: Learn to partner
8
03
02
01
ü Global partnership for synchronised branded
live parties with two-way interactivity
ü Providing go to market support in Europe,
USA and Asia Pacific
ü Providing go to market support in UK, US
and Canada (more markets to come)
Strictly Confidential

9. #4: Respect all of your stakeholders
9
Strictly Confidential
0201
PORTFOLIO
COMPANIES
INVESTORS
CORPORATE
CLIENTS
03

10. #5: Be prepared to adapt and change
10
Outdoor ad exec gets tired
of “touring” his advertisers
around the country looking
at billboards
He creates a web based marketplace
to allow vendors to list billboards and
advertisers to virtually tour using
Google Maps and Street View
(sitetour.com.au)
Advertiser CUB kick
starts marketplace
with $10m brief but
vendors refuse to
respond, fearing loss
of control
Site Tour seeks
funding and
pivots model to
licence planning
platform to
advertisers and
agencies
Over 100
advertisers and all
major media
agencies use Site
Tour to plan their
OOH campaigns
Media operators
begin to realise
value in Site Tour
and begin trading
remnant inventory
on Site Tour in real-
time auctions
Operators elect to
use Site Tour for
live, tradable sites
Data accumulated
on billboards
around Australia -
95% of all media
inventory listed
Site Tour expands
offshore alongside global
media partners
2012
2013
2014
2015
Case Study: Site Tour
Strictly Confidential

11. #6: Rome wasn’t built in a day
11
Year Founded
Revenue
2007 2008 2009 2010 20122011 2013 2014
Strictly Confidential
2015

12. #7: Investor alignment
Strictly Confidential
12
"
Pre-money valuation
The ultimate goal is a meaningful exit not a high pre-money valuation
ü
Simple deal structures
Simplicity helps ensure all stakeholders are incentivised in the same way
ü
Teamwork
Build a close group of investors, advisors and board members

13. Conclusion
Strictly Confidential
13
"
Australian startups have access to less capital compared to their US counterparts
Learn to partner, think global
ü
People, people, people
Calibre of Founder and their team
ü
Persevere, persist, push
Target the smart money
Respect all your stakeholders
Be prepared to adapt and change
Investor alignment

14. This presentation has been prepared by CMB Advisory Pty Ltd (ABN 22 128 797 624; AFSL No. 432212) (CMB Advisory), subsidiary of CMB Capital Pty Ltd (ABN 58 147 332 983), for the sole
purpose of providing information to the Recipient (Purpose). It is provided on a confidential basis, and may not be reproduced in whole or in part, nor may any of its contents be disclosed to any
other person, without CMB Advisory’s prior written consent.
This presentation is provided by CMB Advisory for general information purposes only, without taking into account any potential investors’ personal objectives, financial situation or needs. It should
not be relied upon by the recipient in considering the merits of any particular transaction. It is not an offer to buy or sell, or a solicitation to invest in or refrain from investing in, any securities or
other investment product. Nothing in this presentation constitutes investment, legal, tax, accounting or other advice. The recipient should consider its own financial situation, objectives and
needs, and conduct its own independent investigation and assessment of the contents of this presentation, including obtaining investment, legal, tax, accounting and such other advice as it
considers necessary or appropriate.
This presentation has been prepared on the basis of publicly available information. CMB Advisory has relied upon and assumed, without independent verification, the accuracy and completeness
of all such information. It contains selected information and does not purport to be all-inclusive or to contain all of the information that may be relevant to the Purpose. The recipient acknowledges
that circumstances may change and that this presentation may become outdated as a result. CMB Advisory is under no obligation to update or correct this presentation.
CMB Advisory, its related bodies corporate and other affiliates, and their respective directors, employees, consultants and agents (CMB) make no representation or warranty as to the accuracy,
completeness, timeliness or reliability of the contents of this presentation. To the maximum extent permitted by law, no member of CMB accepts any liability (including, without limitation, any
liability arising from fault or negligence on the part of any of them) for any loss whatsoever arising from the use of this presentation or its contents or otherwise arising in connection with it. This
presentation may contain forward- looking statements, forecasts, estimates and projections (Forward Statements). No independent third party has reviewed the reasonableness of any such
statements or assumptions. No member of CMB represents or warrants that such Forward Statements will be achieved or will prove to be correct. Actual future results and operations could vary
materially from the Forward Statements. Similarly, no representation or warranty is made that the assumptions on which the Forward Statements are based may be reasonable. No audit, review or
verification has been undertaken by CMB or an independent third party of the assumptions, data, results, calculations and forecasts presented or referred to in this presentation.
The recipient acknowledges that neither it nor CMB Advisory intends that CMB Advisory act or be responsible as a fiduciary to the recipient, its management, stockholders, creditors or any other
person. Each of the recipient and CMB Advisory, by accepting and providing this presentation respectively, expressly disclaims any fiduciary relationship and agrees that the recipient is
responsible for making its own independent judgments with respect to any transaction and any other matters regarding this presentation.
CMB may have interests in the securities and other investment products referred to in the presentation, including being directors of, or may have or may in the future act in various roles including
as underwriter, dealer, broker, lender or financial advisor to their issuers and may receive fees, brokerage or commission for acting in those capacities.
© CMB Advisory 2015
Disclaimer
Strictly Confidential
14